lets say a house is listed at 350,000. What is a low end offer without low balling people
- Thread starter holden j caufield
- Start date
Red Dawn
Elite Member
- Jun 4, 2001
- 57,529
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7% plus the 6% the Ferengi R.E. Shyster is getting adds up to 13% which means the seller would be taking it up the ass.
Have your Ferengi R.E. Shyster do an analysis of the local housing market (at least make them earn their money) if similar houses are going for $350,000 then offewr then $345,000. Of course if there is a shortage of Hoimes for sale in that price range the sellers probably will get full price.
Have your Ferengi R.E. Shyster do an analysis of the local housing market (at least make them earn their money) if similar houses are going for $350,000 then offewr then $345,000. Of course if there is a shortage of Hoimes for sale in that price range the sellers probably will get full price.
why should anyone be concerned about low-balling? are you afraid of hurting their feelings? tell them their asking price is insultingly high, low-ball 'em, then go at it like rabid dogs.
Offer them what the house is worth to you. This is not a case where you have to worry about low-balling. It's your money that you will be paying out for the next 30 years.
Remember that the sales agent is working for the seller and is not working for you. It may be worth it to get a realtor to work with you that does not have a vested interest in selling for a higher price. It may cost you a few hundred but be worth it in the long run.
The higher the selling price the higher the commission the realtor will get. Red has given some good advice. Find out what the houses in that area are selling for. Then try and compare the features between those and the house you want. Adjust the price accordingly and then drop about 10% to 15% for your first offer
I let a realtor talk me out of my first offer one time because she said I would be insulting the sellers.
I was stupid way back then. I should have insulted them.
Remember that the sales agent is working for the seller and is not working for you. It may be worth it to get a realtor to work with you that does not have a vested interest in selling for a higher price. It may cost you a few hundred but be worth it in the long run.
The higher the selling price the higher the commission the realtor will get. Red has given some good advice. Find out what the houses in that area are selling for. Then try and compare the features between those and the house you want. Adjust the price accordingly and then drop about 10% to 15% for your first offer
I let a realtor talk me out of my first offer one time because she said I would be insulting the sellers.
I was stupid way back then. I should have insulted them.Get the price per sqr foot of all the houses that have sold in the neighborhood in the past 6months/year. This will give a very good indication of what is low and what is high.
Pretty good advice here. etech mentioned getting a buyer's agent for a few hundred. Around here, the buyer's agent get's 3%, splitting the average 6% with the seller's agent. That's a little more than a few hundred, but if you can work it so the seller pays the buyer agent fee then all is good.
What I want to know is what a person with the username holden j caufield is doing buying a $350,000 home?
What I want to know is what a person with the username holden j caufield is doing buying a $350,000 home?
ha some screwball here is trying to sell for $300,000 while similar houses are around $250,000 tops. Avg like maybe 220 and this place is a dump. Needless to say they must be inhaling too many fumes from the methlab in their freagun basement if she thinks she will sell for that price. Not like I care tho, just think it's funny to let you know that it is possible for them to ask for a highball price too, for all you know the real estate agent caught a whiff of the methlab also. (just kiddin bout the methlab heh)
I would be leery of hiring a buyers agent that worked off a percentage. What's their motivation for getting you the best deal? Most places there is a 6% real estate commission. It is normally split as follows: the broker gets half ( the person who owns the RE office), the listing agent gets one-quarter, the selling agent gets one-quarter. If the listing agent sells the house she gets half, if the broker lists the house he gets three-quarters, etc. I sold a house last July and the buyers had a buyers agent. She worked off a flat fee and was a pain in my ass.
What I want to know is what a person with the username holden j caufield is doing buying a $350,000 home?
Holy crap that made me laugh...
Didn't you know User: J_Kerouac is a copyright lawyer and kenKesey9 is an office manager at the RIAA
....edit~~
which is not to say that holden hasn't earned the right to be prosperous.... don't get me wrong.
It really depends on how the housing market is where you are. Unfortunately right now in many areas the market is a seller's market. This is because the interest rates are very low right now (under 7% in many cases!) and so there are more buyers than sellers in many areas.
Where I live in Fairfax, VA, prices have gone up like crazy on homes. They have been going so crazy that many people have been purchasing homes above what their assessments are coming in at. (A townhouse last summer that was selling for $230,000 is now selling for $285,000-300,000 ... They're nice homes, but that is a HUGE increase in price for only 1 year, an almost 25% increase in price in 1 year ... way better than the stock market right now). Prices in this area tend to go for above list price, however, in your area it may be different.
It really comes down to whether or not you really want the house. In the long term, an extra $5,000 really isn't a lot of money if you intend to stay in the house for many years. Thats the way I started to rationalize things when I made a few offers on homes at under list price or at list price and was getting beaten by people offering more. Remember if the market is hot and the seller gets more than 1 bid than the ball is really in the seller's court. He or she has the advantage at that point, and if you really want this house a lowball offer could easily make you lose the house. (In my experience, most people do not play the bidding war game and hope you'll increase your price... At least not in this area).
Good luck with the house hunting! It took me over 3 months to find something that I was able to afford, able to live in, and able to purchase at list price ... but I finally did (after writing 4 other losing contracts!!!)
EDIT:
BTW- In terms of a buyer's agent, it depends on where you live, but in VA and NJ the general way things work is like this: 6% fee; 1.5% to selling agent, 1.5% to selling agent's company, 1.5% to buyer's agent, 1.5% to selling agent's company (adds up to the 6% fee that the seller generally pays).
A good buyer's agent will realize that if they get you a good deal and treat you right that you will most likely recommend them to your friends and most likely use them as your selling agent when you decide to sell and "upgrade" (that is common practice in the area where I live). If you offer 7% less and get it, you're talking a loss of $367.50 to the buying agent ... Not a huge loss. There *are* buyer's agents out there that are just looking to make a quick sale, and at as much money as possible. But before you start house hunting, you should search for a buyer's agent that you are comfortable with. My buyer's agent agreed to not force me to sign an exclusivity clause with her until after she proved to me that she would do the job right for me. And for 2 months she showed me countless homes, when I could have easily bought a house without her and she would have gotten nothing. Of course, I would never do that and I signed a contract with her when I wrote the first contract on my house. But she always was willing to help me do the market research and even tell me outright when a house was too expensive or not worth the list price. I've found for the most part that agents that are out to make a quick buck want you to sign that contract with them right away where as agents who are dedicated want to prove to you that they're trustworthy before you sign the contract. Thats not 100% true of course, but from my experience thats the general trend I found. Anyways, if you dont already have a buyer's agent you should definitely try to find one. Another good thing to check out is that the buyer's agent doesnt only promote properties which their own company is selling or that they themselves are selling. This is a sneaky tactic that can hurt you as a buyer. My agent always called me when ANY property that matched my criteria came up, regardless of who was listing it.
Where I live in Fairfax, VA, prices have gone up like crazy on homes. They have been going so crazy that many people have been purchasing homes above what their assessments are coming in at. (A townhouse last summer that was selling for $230,000 is now selling for $285,000-300,000 ... They're nice homes, but that is a HUGE increase in price for only 1 year, an almost 25% increase in price in 1 year ... way better than the stock market right now). Prices in this area tend to go for above list price, however, in your area it may be different.
It really comes down to whether or not you really want the house. In the long term, an extra $5,000 really isn't a lot of money if you intend to stay in the house for many years. Thats the way I started to rationalize things when I made a few offers on homes at under list price or at list price and was getting beaten by people offering more. Remember if the market is hot and the seller gets more than 1 bid than the ball is really in the seller's court. He or she has the advantage at that point, and if you really want this house a lowball offer could easily make you lose the house. (In my experience, most people do not play the bidding war game and hope you'll increase your price... At least not in this area).
Good luck with the house hunting! It took me over 3 months to find something that I was able to afford, able to live in, and able to purchase at list price ... but I finally did (after writing 4 other losing contracts!!!)
EDIT:
BTW- In terms of a buyer's agent, it depends on where you live, but in VA and NJ the general way things work is like this: 6% fee; 1.5% to selling agent, 1.5% to selling agent's company, 1.5% to buyer's agent, 1.5% to selling agent's company (adds up to the 6% fee that the seller generally pays).
A good buyer's agent will realize that if they get you a good deal and treat you right that you will most likely recommend them to your friends and most likely use them as your selling agent when you decide to sell and "upgrade" (that is common practice in the area where I live). If you offer 7% less and get it, you're talking a loss of $367.50 to the buying agent ... Not a huge loss. There *are* buyer's agents out there that are just looking to make a quick sale, and at as much money as possible. But before you start house hunting, you should search for a buyer's agent that you are comfortable with. My buyer's agent agreed to not force me to sign an exclusivity clause with her until after she proved to me that she would do the job right for me. And for 2 months she showed me countless homes, when I could have easily bought a house without her and she would have gotten nothing. Of course, I would never do that and I signed a contract with her when I wrote the first contract on my house. But she always was willing to help me do the market research and even tell me outright when a house was too expensive or not worth the list price. I've found for the most part that agents that are out to make a quick buck want you to sign that contract with them right away where as agents who are dedicated want to prove to you that they're trustworthy before you sign the contract. Thats not 100% true of course, but from my experience thats the general trend I found. Anyways, if you dont already have a buyer's agent you should definitely try to find one. Another good thing to check out is that the buyer's agent doesnt only promote properties which their own company is selling or that they themselves are selling. This is a sneaky tactic that can hurt you as a buyer. My agent always called me when ANY property that matched my criteria came up, regardless of who was listing it.
Originally posted by: djheater
What I want to know is what a person with the username holden j caufield is doing buying a $350,000 home?
Holy crap that made me laugh...
Didn't you know User: J_Kerouac is a copyright lawyer and kenKesey9 is an office manager at the RIAA
edit~~
which is not to say that holden hasn't earned the right to be prosperous.... don't get me wrong.
I don't know. When I hear the name all I can think of is booze, older women, and crumby fingernails.
CPA
Elite Member
- Nov 19, 2001
- 30,322
- 4
- 0
How timely.
I am selling my house (not 300K) and received an offer 11 days ago at about 95% of the asking price, which according to my RE is the lowest I should take in this market (west side of Houston). The guy had the inspection done two days ago and wants more concessions (7K worth). I flat out said no because we had already come down 5% on the asking price. Now we're waiting for a response. I'm not insulted, because I realize he is trying to get the most for his money. All I can say is yes or no.
Incedently, his option period ended at midnight last night and he still hasn't decided, which means if he comes back with a "forget it" I contractually get his 1000 dollar earnest money.
***edit
If you haven't gotten a RE agent, try erealty.com. They give you 1% of the purchase price of the home you buy, 3K in your case.
I am selling my house (not 300K) and received an offer 11 days ago at about 95% of the asking price, which according to my RE is the lowest I should take in this market (west side of Houston). The guy had the inspection done two days ago and wants more concessions (7K worth). I flat out said no because we had already come down 5% on the asking price. Now we're waiting for a response. I'm not insulted, because I realize he is trying to get the most for his money. All I can say is yes or no.
Incedently, his option period ended at midnight last night and he still hasn't decided, which means if he comes back with a "forget it" I contractually get his 1000 dollar earnest money.
***edit
If you haven't gotten a RE agent, try erealty.com. They give you 1% of the purchase price of the home you buy, 3K in your case.
its customary that the seller always pays the commision fee (6% split 3/3). Ask your friends to recommend one that they trust.
ultimatebob
Lifer
- Jul 1, 2001
- 25,134
- 2,450
- 126
This depends on the competitiveness to the real estate market, of course. If the house has been on the market for ahwile in a low demand area, you can probably lowball them by as much as 10%. Now, if that house was in an area where people are fighting for real estate, you practically HAVE to offer the asking price just to get the buyers attention.
Around where I live, I've been bidding wars erupt over prime real estate. Even offering the asking price is no guarantee to get the sale.
Around where I live, I've been bidding wars erupt over prime real estate. Even offering the asking price is no guarantee to get the sale.
hehe. No I couldn't do this on my own, but someone else is also going to be signing with me. The houses in orange county suck price wise. A similar house in Arizona or Texas would be under 100,000 but the only places I care to live and that have some decent sized surf is socal, Norcal, and Hawaii. The other two alternatives are even more inflated than socal though. The houses all look pretty similar ~25+ years old on a 4500 sq. lot and about 1500-1800 sq. ft. of living space. My friend from Texas, says offer them 280-300k on a 350k listing. I'm thinking that's a bit on the low side considering the overall housing market, especially in orange county.
When I was buying my first house many years ago, I found a place for $32000. It was worth at least $30,000 but the agent let it slip that the people were getting divorced. I told the agent to offer them $21,000 and she became extremely indignant and said she wouldn't be a party to insulting the sellers with such a low offer. I reminded her that, in CA, she was legally bound to present any and all offers. My wife and I waited in her office while she went to the house to make the offer. She came back with an incredulous look on her face and said the sellers would let the house go for $23,500. Not being the type of person to back off when my opponant is down, I told the agent to go back to the sellers and tell them I would give them the $23,500 if they would throw in the brand new refrigerator we saw while touring the house. This time the agent started to get hostile that I would take such advantage of these poor people until I again reminded her of her legal obligation. When she returned 15 minutes later we had ourselves a $30,000 house plus a new refrigerator for $23,500.
The house I'm in now was worth $140,000 when I bought it for $89,000 from some poor people who were in severe financial trouble. Too bad for them.
The moral of the story is that you should always offer considerably less than the asking price to start with. You can always increase the offer later if it is rejected. I would always offer at least 15% less than the asking price to begin with. It also helps if you can dig up some dirt, I mean information, on the sellers.
Does all of this make me a bad person? Nope. It makes me a smart buyer.
The house I'm in now was worth $140,000 when I bought it for $89,000 from some poor people who were in severe financial trouble. Too bad for them.
The moral of the story is that you should always offer considerably less than the asking price to start with. You can always increase the offer later if it is rejected. I would always offer at least 15% less than the asking price to begin with. It also helps if you can dig up some dirt, I mean information, on the sellers.
Does all of this make me a bad person? Nope. It makes me a smart buyer.
I used a buyer's agent for my first two home purchases, and I'm anything but sorry. If this is your first home purchase, if it's been awhile since your last one, or if you're moving into a new area, go get yourself a good buyer's agent. You'll thank yourself later.
sounds good but in the current market, I'm looking through the MLS database of houses and practically all of them "taking backup offers". I assume a lot of deals fall through because buying one house is usually contingent on the buyer selling his. The housing market is going off for some reason.
"The moral of the story is that you should always offer considerably less than the asking price to start with..."
My father-in-law did about the same thing on an expensive "fixer upper". It was an awesome house in an exclusive area, but was decorated by idiots! It needed to be totally remodeled, so it sat on the market a while. He offered a pretty low bid which was finally accepted... after a friggen year! Damn, that man has patience!
This only works if you aren't a motivated buyer. If you find "the house of your dreams", you DO NOT screw around making low ball offers, or any other offer less than their asking price. You'll be kicking yourself for decades if you miss out on the purchase because of a few thousand dollars. Those few thousand will hardly even register in the monthly payment, so it's not worth the risk of missing out on a house you REALLY want. If you could take or leave that house, offer a little more than they paid for it, if that was within the last ten years. Ask straight out how much it would take to close the deal today and offer 5% less. I see no reason to drag another agent into the deal.
The most important thing to remember about buying real estate is the location. Figure out where you want to live and stick to it. Don't be swayed to live some place "good enough". Buy a run down house in that area if you have to. You can always change just about anything about any house except the location.
My father-in-law did about the same thing on an expensive "fixer upper". It was an awesome house in an exclusive area, but was decorated by idiots! It needed to be totally remodeled, so it sat on the market a while. He offered a pretty low bid which was finally accepted... after a friggen year! Damn, that man has patience!
This only works if you aren't a motivated buyer. If you find "the house of your dreams", you DO NOT screw around making low ball offers, or any other offer less than their asking price. You'll be kicking yourself for decades if you miss out on the purchase because of a few thousand dollars. Those few thousand will hardly even register in the monthly payment, so it's not worth the risk of missing out on a house you REALLY want. If you could take or leave that house, offer a little more than they paid for it, if that was within the last ten years. Ask straight out how much it would take to close the deal today and offer 5% less. I see no reason to drag another agent into the deal.
The most important thing to remember about buying real estate is the location. Figure out where you want to live and stick to it. Don't be swayed to live some place "good enough". Buy a run down house in that area if you have to. You can always change just about anything about any house except the location.
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